Confronting Kevin O’Leary | How He Spends $400 Million Dollars

by the end of the year i'm writing off millions of dollars that's a mistake i make money selling potatoes with people's pictures on them it's a huge hit you're dead to me and you are because i'm out what's up you guys it's graham here so as some of you know one of my favorite series out there is from cnbc make it called wait for it millennial money but there's a problem with millennial money in that it's only millennials so today we got our first ever episode of wait for it boomer box with none other than kevin o'leary from shark dank so i'm about to snap my fingers and he is going to appear right here next to me so with that said smash the like button and let's begin now so we're going to be flipping this around a little bit we did a millennial money on me but now we're going to be doing somewhat of a millennial money on you where would you say first of all you spend the most of your time living i have multiple homes around the world i have one in switzerland one of miami one in boston one in toronto canada i try and have a home in any city i'm at for more than 60 days so that's sort of how it works so i have all my i don't have to travel with stuff and i prefer not to have mortgages on them so i either rent or buy for cash just so i don't have to worry about it so why did you start making youtube videos i mean as you know you've built a big franchise i can help my shark tank companies with my youtube channel that was the idea and i do now yeah and so i started in earnest maybe eight months ago and we had like 11 000 and now we have 270 something thousand so i'm on my way to the million and it's actually working it's you know i do a lot of uh i enjoy the community one b um i always feature a shark tank company and i'm totally transparent saying i invested in you know this company and it's a great as you know feedback mechanism you can try ideas and say what do you guys think and then read what they say right because they're very transparent and honest and maybe i do that deal maybe i don't you know that kind of yeah how many hours a day do you think you work 10 hours a day i get up before anybody else in my family usually around 4 30 5 o'clock and i finish at 10 at night and i take breaks but you know that's the one beef my wife has with me you're always working i see yeah but this is who i am i mean i really enjoy what i do and so you know but i work a lot but don't ever think that you can just say oh you know i'm now worth 50 million i'm going to stop working it never doesn't work that way do you believe there's such a thing as work-life balance no no i don't buy that and i tell my entrepreneurs if you if you're going to take that life and you want to be an entrepreneur and build a company there is no work-life balance you sacrifice your personal life to pay for freedom later in life when you're young and you're working you know 10 12 14 hours a day you're giving up the soccer game if you have kids you're giving up the picnic and all that stuff but you're doing it so that when you're in your 50s and 60s you choose to do whatever you like and i retired for three years and my mandate for that 36 month period was to visit every beach on earth every beach every beach that was legendary you know in cambodia in cyprus in tunisia i hit them all i got really bored has it impacted your family and your relationships to have i would say work so much i would say yes i i don't think i have as close a relationship with my kids that i would have had had i been a stay-at-home father because i was gone all around the world during the learning company days my big liquidity event was selling the learning company for 4.2 billion you know i've done many deals since then and nev nothing ever as big as that one because i don't wish to take that much risk anymore do you have any regrets though spending so much time working because i feel like i'm in a very similar spot where i love working i think you have a different issue now that you face in where you are in the continuum of life you're not married you don't have any kids and so you have to decide or you're going to take that journey and i would argue it's worth taking the regret i have is i wish i'd had kids earlier but that was never going to happen because i was working so hard at that time the challenge you're going to have and i say this to anybody in your situation is when you get married to whom do they understand who you are because if you don't have a partner that understands working 15 hours a day you're going to get divorced what i learned about being in the wedding industry is 50 of marriages end within seven years not for not for infidelity financial it's some one side is outspending the other and doesn't respect how hard it is to make money and they they break up because of financial stress that's the reason so for your investments do you invest in individual stocks or etfs uh 80 is etfs my own i design the indexes you know shares so ousa is my largest holding which is a very conservative it selects the best companies in the s p 500 that pay dividends that's my biggest holding i have one called ogig which is ogig inter global internet giants all it's up 70 this year it's all it's not just the fangs it's the global internet giants so jd.comwix.com docusign anything that has to do with with you know the digitization of the economy globally that's a big one for me would you say you try to beat the market no i don't try and beat the market i try and preserve my capital all my strategies are very conservative so when you ask me the difference between bean stocks and all the other robo apps out there bean stocks in my view is way more conservative because it's the draw downs when the market corrects 30 percent i don't want to go down 30 percent i don't want i don't need to beat the market i don't what i care about is preserving my capital why dividends why not invest in growth stocks and sell off if you need to at a long term capital gain my expenses my living expenses come off that portfolio on a monthly basis because you can't really buy bonds anymore that make you 2.8 but you can buy stocks that get you around that on an annual basis so that's that is sort of my investment strategy own a basket there's about 80 to 100 stocks in there that pay me a monthly distribution and you know if i want to travel rent a car whatever that's what i use in cash how many income sources would you say you have right now it's a great question no one's ever asked me um probably 30 yeah 30 different and they're all over the place what would you say your biggest investments are my financial services companies i've invested millions and millions and millions because they're very long term yeah and the reason i did bean stocks is i really wanted to reflect my investment philosophy that was number one and number two i believe it's the simplest platform to work with if you've never invested before there's nothing simpler than bean stocks and that's really the market i'm going after what would you say your worst investment is so i've had many i've had many what have you lost the most amount of money on you think about startups i just funded one last week for 200 000. most of my startup deals are you know between 200 and a million and so let's say i invest in 50 of them which i have each year right now actually i had my first call pwc does my accounting and we go through the entire list and they say that's non-performing that's not performing that's before by the end of the year i'm writing off millions of dollars but every year i get a monster winner too so i have 20 of my portfolio goes to zero each year and so those are bad investments they were mistakes but because i invested in so many i get a couple like plated with sold albertsons for 340 million dollars like that was a huge win and paid for all the mistakes for years you don't have a lot of zeros in your book but if you're going to be an investor and support entrepreneurs you're going to make mistakes so this year i'll write off millions again this is a tough year do you buy starbucks no i have this uh i have a problem paying a huge amount for a commodity that i know can be made for 18 cents i just don't do it it's just not in my dna i can't handle it i hate wasting money i think it's bad karma there's got to be a place though where you would consider yourself wasteful with money there's got to be something well there is there is and it's watches however it's not wasteful the asset you will never see this watch again this watch is already because there's so few of them in the world this is an fp journey blue there's so few of them that it's appreciated in value a lot the portfolio is worth way more than i paid for it but i have too many of them there are certain things that i just indulge in but they're not valueless when you drink that coffee it's gone this isn't gone it's still here so i i by my mother taught me you know she used to say when she was a working girl i'm gonna i'm gonna work for two years to buy chanel jacket most people would buy five jackets lower quality maybe and just throw them out she wouldn't do that she bought really really high-end chanel she loves chanel when she died the women in my extended family went nuts for her wardrobe i had to beat them off with a stick fighting for each of these classic pieces because she kept them in pristine condition an old chanel jacket is worth a fortune today and that was georgette's understanding of value of buying things that have retained value and i say that to anybody when you buy stuff that's consumable that money's gone it's ghost money when you buy something like a you know an fp journal watch even though i'll probably put it in my coffin when i die but if i don't it'll be worth to my son or my family a lot of money yeah this thing is appreciating in value do you feel comfortable talking about your income my mother taught me something about net worth never boast about money there's a concept called karma because if you do you won't have any so i believe her speaking of that how much do you save every month would you say you have a set amount a percentage that you try to save every month so everything i buy i ask myself do i need this is this something i need now if i need more production equipment i buy it i need a new tv studio i buy it my expenditures tend to be really big ones for for things that i can make money off of i don't buy a lot of frivolous crap i have a very basic outfit you know for shark tank i have 25 of the same suits 25 shirts 25 black ties but you would say then you save more than you would spend every month by how much fifty percent sixty percent probably fifty percent okay i don't think it's a good idea to spend all your income it's a dumb idea what percentage then would you say is personal from that and what percentage is business well that's the thing i own all my businesses and so i think of it as all personal like just like like i own 100 of the larry productions it has a massive portfolio of companies in it how many credit cards do you have probably 30. that's a great question what would you say you use the most often um you know that i think that's a very interesting question no one's ever asked me let's let's count let's just count this let's just count let's see one two three four five six seven eight nine so there's that's 21 and i pay off every single one every month so my credit score must be amazing what are your thoughts on mainstream media do you think it's going to become eventually obsolete compared with social media the value of mainstream media is the brand they've built and i think for a guy like you who's obviously um you know built a big platform on various social media platforms start to think about the equity in your brand because one bad posting can destroy you i'm very conscious now of who i work with we vet everybody including you you came out great but i was introduced to cnbc to you that's why i think mainstream matters the brand matters do you think you're ever going to be content with where you are no no i'm never content i'm going to be working till the day i die and wherever i go after that i'll be working there too so i mean i really enjoy what i do i mean that's the whole idea of being an entrepreneur is to be able to do the things that you really want to do what is your advice for me you're an advocate for financial literacy you're an advocate for helping millennials you know take the entrepreneurial journey you're an advocate so how your brand now that you've got millions of followers what you might want to consider is start doing advisory business these companies have come to me and said can we partner and i looked at and said only if i become an investor and it made sense you could be doing that but also are you working as hard on the other platforms as you are on youtube that's a mistake i mean why aren't you on linkedin why aren't you big on instagram why aren't you doing stuff on twitter so i mean i don't think you're doing enough on social actually and you're con and scan portfolio management you're over concentrated on one platform i tend to do one thing really well i know but i like thinking one thing you want criticism it's going to be that you're not diversified enough okay and you're not diversified in your personal portfolio i mean you want to be on the critical side too much concentration on youtube not the other platforms everything else is pretty good actually you know you're doing well you've got a great net worth for 30 thanks so with that said you guys thank you so much for watching i really appreciate it as always make sure to destroy the subscribe button and the notification bell also feel free to add me on instagram i posted pretty much daily so if you want to be a part of it there feel free to add me there as on my second channel the graham stefan show i post there every single day i'm not posting here so if you want to see a brand new video for me every single day make sure to add yourself to that and lastly if you want a totally free stock worth that minimum eight dollars and all the way up to one thousand six hundred dollars weeble is going to give you that free stock when you deposit a hundred dollars on the platform so let me know which free stock you get thank you so much for watching and until next time

Channel: Graham Stephan

Views: 890,002

Keywords: investing, investing for beginners, investing in your 20s, how to invest, how to invest in real estate, how to invest in stocks, stock market investing, stock market investing for beginners, stock options, robinhood, robinhood app, best stock trading app, how to be a millionaire, how to be a millionaire in 3 years, credit score explained, credit card, credit cards for beginners, passive income, how to build wealth, how to build wealth in your 20s, real estate 101, kevin oleary

Id: nF3b7hIaLxo

Length: 13min 49sec (829 seconds)

Published: Wed Oct 07 2020